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Indian Laws - Highlights / Catch Notes

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Dishonour of Cheque - Legally enforceable debt or not - The ...


Section 138: Cheque Bounce Offense Only Applies if Cheque Represents Legally Enforceable Debt at Encashment.

July 27, 2023

Case Laws     Indian Laws     HC

Dishonour of Cheque - Legally enforceable debt or not - The offence under Section-138 arises only when a cheque that represents a part or whole of the legally enforceable debt at the time of encashment is returned by the bank unpaid. Since the cheque did not represent the legally enforceable debt at the time of encashment, the offence under Section-138 is not made out. - HC

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